Octopus rates. I'm confused?

janbeno

Received my first bill since the Oct cap. In my account it says:

Elec 35.98 SC 46.95 incl vat
Gas 10.34 SC 26.84 incl vat.

However the bill I received says:

1st Oct 2022 26990.0 Customer reading

31st Oct 2022 27229.0 Customer reading

Energy Used 239.0 kWh @ 51.27p/kWh £122.53

Energy Price Guarantee 239.0 kWh @ 17.00p/kWh -£40.63

Standing Charge 30 days @ 44.72p/day £13.41

Subtotal of charges before VAT £95.31

VAT @ 5.00% £4.77

Total Electricity Charges £100.08

1st Oct. 2022 8482.0 Customer reading

31st Oct. 2022 8548.0 Customer reading

Consumption 66.0 Units (m3)

Energy Used* 749.9 kWh @ 14.07p/kWh £105.50

Energy Price Guarantee 749.9 kWh @ 4.22p/kWh -£31.62

Standing Charge 30 days @ 25.56p/day £7.67

Subtotal of charges before VAT £81.55

VAT @ 5.00% £4.08

Total Gas Charges £85.63
Electricity

Tariff Name Flexible Avro October

2021 v1

Product Type Variable

Payment Method Direct Debit

Unit Rate 51.27p/kWh

Standing Charge 44.72p/day (£163.22/year)

Gas

Tariff Name Flexible Avro October

2021 v1

Product Type Variable

Payment Method Direct Debit

Unit Rate 14.07p/kWh

Standing Charge 25.56p/day

(£93.31/year)

I do realise it's a variable tariff but Octopus also say they will inform me of any rate rises. How can the tariff on my account page be so different from the bill and I thought the unit prices had been capped?

Raxiel

The highlighted numbers are the actual tariff rates as set out by OFGEM that came into effect on 1st of October. Before they kicked in, Truss' government announced the Energy Price Guarantee that placed an additional cap. Rather than change the tariff, Octopus applied that additional cap as a discount. Subtract the EPG price from the tariff price to see what you actually pay. So 15.27-17 = 34.27p/kWh for Electricity and 14.07-4.22 = 9.85p/kWh for gas.

EssexHebridean

They charge out at the "full" rates, then take off the amount saved by the EPG. It's a bit unorthodox and yes, might be simpler if they just showed the EPG rates only, but ultimately it's giving the same result I think. 

janbeno

Thanks for the explanation. It's really confusing.

Raxiel

Have to say, that was a quick turnaround on that bill though. I realize it was based of submitted reads, but even though Octopus have my smart reads by mid afternoon the day after they were taken it still always takes them a few days to actually raise my bill.

EssexHebridean

I've heard some people saying it pops in the day after the meter reading, but mine certainly hasn't yet - I suspect that might be to do with it being my first bill with them as well, though. (Could also be that they are taking more notice of the DD date than I was lead to believe they will - it will be interesting to see if the bill arrives tomorrow when the D will also go out.)

janbeno

Raxiel said:

Have to say, that was a quick turnaround on that bill though. I realize it was based of submitted reads, but even though Octopus have my smart reads by mid afternoon the day after they were taken it still always takes them a few days to actually raise my bill.

 I get an email after the reading to say they have the reading, and my balance is adjusted. If I check my account it shows the workings out and the balance. Although the last 2 bills the gas reading has been held back from the workings , last month it took a while so much so I emailed them and attached the pics of the readings.

This month I was surprised to get the bill so quickly.

[Deleted User]

If you were an energy supplier watching Government policy change each time we get a new PM, the only given - until January 2023 - is the Ofgem 1st October energy Cap. 

If come later this month the Chancellor decides to kick the EPG Scheme into the long grass, then Octopus is well placed to remove the discount and continue to bill normally.

BooJewels

Historically I've always had my reading acknowledgement and then the bill within an hour or two of giving them a reading.  They've slowed a smidge lately, I submitted my readings about 21:30 last night and got the two emails this morning.  I only have electricity with them.

My bill is a bit more confusing still, in that my last reading was submitted on 29th September, so I have one page of bill from 29th, to an estimated reading on the 30th, at the old rate, then a second section from the estimate for the 30th until last night, at the new rate.

CanNeverThinkOfAUsername

Octopus don't send system emails between 10pm and 8am, they used to, but some people complained about the email waking them up (still find this strange). So any emails that are due in the evening/overnight go out in the morning these days. The only emails that still come overnight is the support type emails as this comes from another system

janbeno

[Deleted User] said:

If you were an energy supplier watching Government policy change each time we get a new PM, the only given - until January 2023 - is the Ofgem 1st October energy Cap. 

If come later this month the Chancellor decides to kick the EPG Scheme into the long grass, then Octopus is well placed to remove the discount and continue to bill normally.

Makes sense, we live in confusing and worrying times.